Company Expenses

Company Expenses (November 2013)

Out-Of-Pocket Expenses

If you have paid for a business expense either with cash or from your personal bank account, the company can reimburse you for these items. Common examples are business cell phone, parking, and internet at home. If the amount is not significant, calculate and reimburse yourself once a year. If the amounts are significant, reimburse yourself either quarterly or monthly. Our website has a sample expense report that you can use.

Mileage

If you use your personal vehicle for business, the company can reimburse you at a pre-determined rate per km. This is a deductible expense to the company and tax-free to you personally. The current rates are:

• $0.54 for the 1st 5,000 km per year
• $0.48 for the balance

Our website has a mileage log that you can use to track your km. This expense is normally recorded at year-end. The company should not pay for any vehicle related expenses if you use the km rates.

Office in Home

If you have an office in your home that is either:

• Your principal place of business, or
• Used on a regular basis to meet clients

the company can reimburse you for a portion of the home operating costs (eg. rent, mortgage interest, property tax, insurance). Our website has a home office sheet that you can use to track your costs. The reimbursement is calculated by multiplying the total operating cost by the % space that the office occupies. This expense is normally recorded at year-end.

General

Any reasonable expense incurred to earn income should be deductible. If you are uncertain, give us a call.

Resources:
Business Expenses Paid Personally
Driving log
Home Office